Mobius Expects 40% BRIC Stocks Gain, Says Buy on Dips

Mark Mobius said stocks in Brazil, Russia, India and China are likely to rise by 30 to 40 percent within three to four years as higher economic growth and lower government debt spurs corporate earnings.

Mobius, chairman of Templeton Asset Management Ltd., said he’s increasing holdings in all emerging markets, with particular focus on the four biggest developing-nation economies collectively known as the BRICs.

“BRIC countries are really at the top” of our favorite holdings, Mobius, who oversees about $25 billion of emerging- market assets, said in an interview at the sidelines of a press conference in Istanbul today. “You can see BRIC countries have been best performing.”

Russia’s RTS Index has surged 135 percent this year, the biggest gainer among 89 equity gauges worldwide, and Brazil, China and India rallied more than 75 percent as the global economic recovery spurred demand for commodity exports. While developed countries may shrink 4 percent this year, emerging markets as a whole may avoid a contraction with zero change in gross domestic product, Mobius said. (more)